Britain looks at possible double-dip

Published: Nov. 26, 2011 at 1:28 PM

LONDON, Nov. 26 (UPI) -- Government sources told Britain's The Daily Telegraph a highly respected economic organization is predicting a double-dip recession for the country.

The Daily Telegraph said Saturday that official said the Organization of Economic Cooperation and Development had warned the British government of its prediction, which will be released Monday a day before Chancellor George Osborne is to give a major policy address.

The OECD report, even though the next recession is expected to be mild, is said to have "sent a bolt of lightning" through Britain's Treasury and the office of Prime Minister David Cameron.

The OECD is also recommending a policy shift, saying Britain should slow down its path towards budget austerity and, should the eurozone debt crisis not be resolved soon, return to adding some stimulus to the economy.

The government is expected to unveil a plan Tuesday that aims to increase lending by banks to small and medium-sized companies. In addition, the government is expected to back $77 billion worth of infrastructure projects and $926 million in education programs.

Source: http://www.upi.com/Business_News/2011/11/26/Britain-looks-at-possible-double-dip/UPI-46561322332094/

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